Abstract

The author provides a critical analysis of the new cash method for revenue recognition under personal income tax (PIT), which was introduced on January 1, 2025. The article highlights challenges associated with interpreting the concept of independent business activity and the absence of regulations addressing the effects of adjustments to revenue amounts. It examines issues related to changes in the timing of revenue recognition, particularly regarding partial settlements of receivables and advance payments. Additionally, the article underscores the significant requirement to document transactions with invoices issued within the deadlines set by relevant regulations and identifies challenges in understanding the criteria for transactions involving entrepreneurs. The author concludes that, although the cash method offers potential advantages, numerous ambiguities and regulatory shortcomings may impede its practical implementation.